The U.S. International Trade Commission (ITC) has voted to institute an investigation of certain
personal computers and digital display devices. The products at issue in this investigation
include desktop and notebook computers, and digital display devices both as stand-alone devices
and as integrated components of a notebook computer.

The investigation is based on a complaint filed by Hewlett-Packard Company of Palo Alto, CA,
on April 19, 2007. The complaint alleges violations of section 337 of the Tariff Act of 1930 in
the importation into the United States of certain personal computers and digital display devices
that infringe patents owned by Hewlett-Packard. The complainant requests that the ITC issue a
permanent exclusion order and a permanent cease and desist order.

The ITC has identified the following as respondents in this investigation:

Acer Incorporated of Taiwan; and
Acer America Corporation of San Jose, CA.

By instituting this investigation (337-TA-606), the ITC has not yet made any decision on the
merits of the case. The case will be referred to the Honorable Paul J. Luckern, an ITC
administrative law judge, who will schedule and hold an evidentiary hearing. Judge Luckern will
make an initial determination as to whether there is a violation of section 337; that initial
determination is subject to review by the Commission.

The ITC will make a final determination in the investigation at the earliest practicable time.
Within 45 days after institution of the investigation, the ITC will set a target date for completing
the investigation. ITC remedial orders in section 337 cases are effective when issued and
become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade
Representative within that 60-day period.